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The Financial Accounting Foundation (FAF) has released its 2018 annual report.

The report high­lights the stan­dard-set­ting ac­tiv­i­ties of the FASB and GASB in 2018 and details how the boards “develop standards that work today and for the future — and how the FAF supports that process.” For more in­for­ma­tion, see the press release and annual report on the FAF’s Web site.

The PCAOB has issued a staff guidance document, “A Deeper Dive on the Communication of CAMs,” related to the implementation of the new critical audit matter (CAM) requirements.

The staff guidance document provides answers to a number of FAQs that address “questions that may arise when the auditor is communicating CAMs under AS 3101, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion.”

The ED proposes “(1) defining a SBITA; (2) establishing that a SBITA would result in a right-to-use subscription asset — an intangible asset — and a corresponding subscription liability; (3) providing the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requiring note disclosures of essential information regarding a SBITA.”

Comments on the ED are due by August 23, 2019. For more information, see the press release and ED on the GASB’s Web site.

The IASB has published an exposure draft (ED), “Annual Improvements to IFRS Standards 2018–2020.”

The ED, which is part of the IASB’s annual im­prove­ments process (i.e., a project to make necessary, but nonur­gent, amend­ments to IFRS Standards that will not be made as part of another major project), would make revisions to the following standards:

The ASU “allows an option for preparers to irrevocably elect the fair value option, on an instrument-by-instrument basis, for eligible financial assets measured at amortized cost basis upon adoption of the credit losses standard.” The overall purpose of the new guidance is to enhance “the comparability of financial statement information provided by institutions that otherwise would have reported similar financial instruments using different measurement methodologies, potentially decreasing costs for financial statement preparers while providing more useful information to investors and other users.”

For entities that havenot yet adopted the credit losses standard, the ASU will be effective when the credit losses standard is implemented. For entities that have adopted the credit losses standard, the ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.

For more information, see Deloitte's related Heads Up newsletter as well as the press release and ASU on the FASB’s Web site.

The FASB has issued a proposed ASU, “Simplifying the Accounting for Income Taxes.”

The proposal, which is part of the Board’s simplification initiative, is aimed at reducing the complexity and costs of income tax accounting. Specifically, the proposed ASU would (1) remove certain exceptions to the general principles in ASC 740 and (2) simplify certain aspects of income-tax-related GAAP for financial statement preparers. The proposal would not create new accounting requirements in ASC 740.

Comments on the proposed ASU are due by June 28, 2019. For more information, see the press release and proposed ASU on the FASB’s Web site.